What is an “Exchange Traded Fund” or an “ETF”

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    What is an ETF?



    An ETF  is a form of index fund from standpoint of its goal: To provide a market benchmark return but at a minimal cost.  In comparison Index funds are costly to trade and often ETFs can be traded commission-free.

    However not all ETFs follow index funds methodology. To achieve index performance but with a minimal cost, you should invest in the largest, most widely traded ETFs on the market, which mimic well-known benchmarks and have history to prove it.